Adventures of a Currency Trader
Rob Booker
Best Price $27.00
or Buy New $34.65
Short Term USDJPY Target Update
Since the posting on 8/23/2007 the market has attempted a move upwards to the 116.75 level and has pulled off of this level and retreated to the lower levels of support. Still looking for price to retrace up to this level but now up to the 118.75 level. Consider support level at 114 area very strong. However, If breached could change opinion to the downside target of 112 before reaching the 118.75 target.
Posted by: aFxEdge.com on 8/29/2007 at 08:38 AM ET comments disclaimer _________________________________________________________________
Thoughts on the Buying Side and on the Selling Side of the Market
In his 1931 book "Tape Reading and Market Tactics", Humphrey Neill breaks down both the buying side and the selling side of a trade. Why do traders buy or sell? Consider who is on each side and what are their motives.
The Buying Side
Those:
On the Selling Side:
Those:
Posted by: aFxEdge.com on 8/25/2007 at 03:23 PM ET comments disclaimer _________________________________________________________________
Short Term USDJPY Target
Looking for a short term price target at 118.50-60 area and possible price correction to the downside at this point.
Posted by: aFxEdge.com on 8/23/2007 at 10:43 PM ET comments disclaimer __________________________________________________________________
Long Term USDJPY bias posted 8/17/2007 on MoneyTec Forum
JPY Week chart
low 108.99 on 5/19/2006
high 124.15 on 6/22/2007 elapsed time little over 12 mos.
current price 114.31 low today was 111.58
after price hit the 112 area it quickly bounced up some 200 - 300 pips in a
relatively short period of time. Seems like 112 was low compared to the
highs and lows stated above.
Based the technical levels
low 108.99 on 5/19/2006
high 124.15 on 6/22/2007
current 114.31
based on this a move upwards, long term, is more likely.
Posted by: aFxEdge.com
on 8/20/2007 at 4:19 PM ET
comments
disclaimer
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GBPUSD Support and Resistance Levels and Areas
Sterling weakness and dollar strength over the past 18 days could possibly suggest a turn around in direction. With the easing of the discount rate by 50 basis points today and the potential for fed funds easing even more so on the table, sentiment bias dollar weakness seems a likely probability.
Below are current technical levels as of 12:35 PM ET. disclaimer
Posted by: aFxEdge.com on 8/17/2007 at 12:39 PM ET comments disclaimer
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"Attributes of a Successful Trader"
Leo Melamed, successful speculator and former chairman of the Chicago Mercantile Exchange gave an address at the Financial Editors Seminar in Chicago Illinois on November 10th 1969. In the address he described numerous attributes and abilities that a successful trader must have. (see Leo Melamed on the Markets, Wiley and Sons)
Posted by: aFxEdge.com on 8/16/2007 at 8:41 AM ET comments disclaimer
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GBPUSD Resistance and Support Areas
Current Price 199.84 on 8/14/2007 at 4:12 PM
Lower support areas 199.50 - 199.60, 198.82, & 198.28
Upper Resistance areas 200.18, 200.80 - 200.90, & 201.40
Anticipating market energy to lose steam at these levels.
Posted by: aFxEdge.com on 8/14/2007 at 4:12 PM ET comments disclaimer
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"Thoughts from Bill Williams on Buy Low, Sell High"
In his book, "Trading Chaos" (Wiley), Bill Williams makes some interesting points on the subject of buying low and selling high. He argues that the common formulas used among traders are misconceptions.
" Two often repeated formulas for successful trading are (1) buy low and sell high and (2) to make profits you must trade with the trend. Those two statements are absolutely incompatible. If you buy or sell high, you are standing in the way of the trend. And if you follow the trend you are not buying low or selling high."
He later goes on to say that the strategy that one uses should be determined by the market. The strategies that he teaches incorporates both a trend following and buy low sell high entries based on specific market criteria that he has defined.
This is an interesting take on the matter of buying low and selling high and trend trading.
Posted by: aFxEdge.com on 8/14/2007 at 12:58 PM ET comments disclaimer
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"J. Paul Getty on Buy Low, Sell High"
J. Paul Getty was an American industrialist and founder of the Getty Oil Company. From Minneapolis Minnesota, he was one of the first people in the world to amass a fortune of well over one billion dollars. Below is an excerpt from his book "How to be Rich" and his thoughts about buying the market. While he was speaking in the context of a longer term buy and hold strategy, his thoughts of buying low are brilliant for the short term trader to ponder as well.
" . . . the seasoned investor buys his stocks when they are priced low, holds them for the long pull rise and takes in between dips and slumps in stride. Buy when stock prices are low - the lower the better - and hold on to your securities. Great numbers of people who purchase stocks seem unable to grasp these simple principles. They do not buy when prices are low. They are fearful of bargains. They wait until the stock goes up - and up - and then buy because they feel that they are thus getting in on a sure thing. Very often, they buy too late - just before a stock has reached one of its peaks. Then they get caught and suffer losses when the price breaks even a few points."
Posted by: aFxEdge.com on 8/13/2007 at 7:32 PM ET comments disclaimer
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"Buy Low, Sell High"The old adage quoted again and again - Buy Low and Sell High is the key to making money in the markets. It really does not matter what business you are in whether it is selling shoes, mowing lawns, a distributor of medical equipment, or a fortune 500 company that sells information technology solutions. The principle of buying low and selling high holds true for all regardless whether one is aware/acknowledges it or not. The idea here is to procure at a lower value and then sell it for a higher value, the difference is what is called a PROFIT. It is a simple concept which often times escapes many a trader waddling through the quagmire of filters, trading systems, trading journals, and blogs (like this one).
Consider this; when you take a trade are you buying low to initiate the trade or are you chasing a runaway train, or are you selling high when the market is actually breaking lows and dropping like a ton of bricks? It is true that in some breakout strategies that you buy high and attempt to sell higher or sell off of a broken support level for even lower levels from which to buy out. While oft times these strategies can work other times they can be a disastrous entry unless a good solid risk control plan is in place that is swiftly executed. Solid risk management is obviously another important key regardless the system.
While no one has a crystal ball at this thing, the principle of buying low and selling high will always remain paramount and one that can take you to the bank. It is always very helpful to keep in mind this principle of buying low and selling high.
Posted by: aFxEdge.com on 8/13/2007 at 3:32 PM ET comments disclaimer
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